Big Oil Discoveries "Worryingly Low", Expert Says

The number of significant oil discoveries in recent years – those above 250 million barrels of oil (MMboe) - is 'worryingly low', with only 14 of this size made in 2006, according to an industry observer.

Speaking at the International Conference of Emerging Plays in Australasia yesterday, a member of IHS (an international media service who provide industry-specific information for businesses), Ian Cross said that global discoveries through wildcat drilling had peaked in the 1970s with a significant slump in recent years.

He says in 1970, 90% of oil and gas was discovered in big fields but by 2003 this figure has fallen to just 40%.

"Over the last five to ten years, gas has been the predominant type of hydrocarbon to be discovered," Cross says.

"We have only identified 430 prospects left globally which would give out the equivalent of 250 MMboe, most of this being in Latin America and deepwater Brazil."

Cross says China has many major offshore prospects, with recent discoveries of deepwater wells, but points out the under- development in shallow water.

The message is not all bleak with South-east Asia presenting an attractive prospect for the future discovery of high impact wells.

"South-east Asia has seen seven of the world's 14 250MMboe discoveries in 2006. North West Australia is currently one of the world's hottest areas with national oil corporations (NOC's) dominating the region," Cross says.

By Ozge Ibrahim